Early-payment discounts – the old math-class calculation of “if Company A buys $100 of merchandise from Company B on terms of 2/10, net 30, what will Company A pay for the merchandise if it pays one week after purchase?” – seemed destined for the history books. The “Company As” of the world simply couldn’t process their invoices by hand fast enough to beat that “all-or-nothing” 10- day deadline. And the “Company Bs” of the world stopped offering them because customers were taking discounts to which they weren’t entitled.

Harnessing the efficiencies of eInvoicing, Dynamic Discount Management (DDM), and the use of a sliding scale to optimize cash management has brought new life into a once dilapidated practice. In our annual eInvoicing Management Surveys, PayStream has seen an increasing amount of AP professionals report that they are capturing 100 percent of offered discounts in our annual eInvoicing Management Surveys. Even more are capturing some discounts and nearly all are moving DDM to the top of their priorities for 2014.  This growth can be attributed to innovations in AP software designed to capture these discounts and its growing adoption.

PayStream Advisors is currently finalizing sponsorship for the 2014 report titled “AP & Working Capital: Early Discount Payment Opportunities.” The report will benchmark the leading solution providers in the DDM realm and will provide AP Managers, CFOs, and other decision-makers with a valuable guide to the tools they need to increase revenues from discounts.